Business Irish

Thursday 25 May 2017

Permanent TSB raises €500m at 0.25pc interest rate

Jeremy Masding, Group Chief Executive, Permanent TSB
Jeremy Masding, Group Chief Executive, Permanent TSB
Gavin McLoughlin

Gavin McLoughlin

Permanent TSB has raised €500m of five-year debt at an ultra-low interest rate of approximately 0.25pc.

The 75pc State-owned bank said it would use the money to bolster its balance sheet and support planned growth in mortgage lending. The interest rate it will pay on the borrowed money is well below its mortgage rates.

The offer approximately 2.5 times oversubscribed, the bank said.

The fundraising comes amid a backdrop of jitters for the European banking sector after Deutsche Bank was forced to deny it had asked for a bailout from the German government.

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